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A product of British Aerospace at its Manchester facilities, the ATP is the stretched and updated development of the HS 748 (formerly Avro, latterly BAe 748), production of which ceased in 1989.

Development of the BAe ATP / Jetstream 61 started in 1984 as a short-range, low-noise, fuel-efficient turboprop aircraft. The airframe of the Avro 748 was re-designed and lengthened 5.03 m (16.5 feet), the wing re-designed, and minor modifications were made to the nose and tail shapes. The six-blade Hamilton Standard composite propellers were driven by 1,978kW / 2,653shp Pratt & Whitney Canada PW126 engines. The British Aerospace Advanced Turboprop or ATP is a twin turboprop airliner for up to 72 passengers. Passenger accommodation totals 64 at 31-in (79-cm) seat pitch in a fuselage similar to that of the 748 but 16 ft 6 in (5,03 m) longer. Other changes included smaller and closer-pitched cabin win-dows, a wider centre section for the wing (adapted from the Andover), new landing gear, a redesigned flight deck with EFIS instrumentation, and new electrical, hydraulic and environmental control (air conditioning) systems.

The ATP programme was launched in March 1984, and the prototype, G-MATP s/n 2001, was flown first on 6 August 1986. Certification was granted in March 1988 and the ATP entered airline service in May 1988 with British Midland Airways.

By the end of October 1990, 39 aircraft had been ordered with some 12 further options held, and 30 machines had been delivered to six airlines. Production in 1991 was running at about 12 aircraft a year, and depending on specification, the new cost is between $US112.5 and US$13.0 million.

In 1994, a modified version with Pratt & Whitney Canada PW127D engines was introduced under the name Jetstream 61. The BAe ATP and Jetstream 61 failed to attract significant orders. The ATP / J61 saw a limited production run. 63 ATPs and 1 Jetstream 61 were built. Production ended in 1998.

In 2001, the ATP Freighter project started, with 6 ATPs to be converted into cargo aircraft for West Air Sweden. The ATPF is capable of carrying eight LD3 containers or six LD4s when fitted with the Large Freight Door, or loading up to eight tonnes. The ATPF made it first flight on 10 July 2002. Since then, 12 ATPs were converted into ATPFs.